ACCOUNTS - Final Accounts preparation

Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:

Registered number: 10520451

LONGWATER LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

LONGWATER LIMITED

COMPANY INFORMATION

Directors	N Carter
	W Littleboy
	MA Carter
	F Littleboy


Registered number	10520451


Registered office	7 The Close
	Norwich
	Norfolk
	NR1 4DJ


Independent auditors	MA Partners Audit LLP
	Chartered Accountants
	7 The Close
	Norwich
	Norfolk
	NR1 4DJ

LONGWATER LIMITED

CONTENTS

	Page
Group strategic report	1 - 3
Directors' report	4 - 5
Independent auditors' report	6 - 9
Consolidated statement of comprehensive income	10
Consolidated balance sheet	11 - 12
Company balance sheet	13 - 14
Consolidated statement of changes in equity	15
Company statement of changes in equity	16
Consolidated statement of cash flows	17 - 18
Consolidated analysis of net debt	19
Notes to the financial statements	20 - 41

LONGWATER LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The Directors present the Group Strategic Report for the year ended 31 December 2024.

Principal business activities

The Company distributes a wide range of construction materials to a wide base of both trade and retail customers. Traditionally heavily biased towards servicing the civil engineering market, the business has developed significant income streams and relationships with larger housebuilders, property developers, small builders, landscaping specialists, DIY’ers and the general public. The Company has continued to broaden its stock portfolio from basic groundworks materials to insulation, timber, and landscaping. The aim is to be the best all round builders merchant in East Anglia.

Business review

We aim to present a balanced and comprehensive analysis of the Company’s activity during the year and the position of the Company’s business at the year end consistent with the size and complexity of the operation.
The Directors are pleased to report that revenue has been mainted in 2024 and gross margin has increased slightly to 20% (2023: 19.5%) despite the challenging market conditions. Overhead costs came under significant upward pressure resulting in a reduction in operating profit to £1.26m (2023: £1.69m)
Trading conditions across the building merchanting sector remained very challenging throughout 2024. Levels of demand in the construction sector have continued to decline meaning competition between merchants has been very intense. This has put downward pressure on prices and margins and increasing overhead costs have had to be absorbed by the business. The new build housing sector in our core Norfolk market has also been severely affected by the nutrient neutrality regulations causing delays and difficulties getting planning consent for new developments.
The Company continues to maintain close relationships with suppliers and uses its membership of the H&B Buying Group to best advantage. This enabled the company to secure wide supply chains and continue to procure materials at market competitive rates.
The new branch opened by the Company during 2023 continued to grow turnover and expand our market share and customer base. The new branch though is still having a negative effect on overall profitability while the revenue at the branch continuers to grow. The directors expect the branch to generate a positive contribution to profit in 2025.
Despite the challenging trading environment, the business has continued to invest to support the future needs of the business. During the year the Group committed to purchasing 9 new delivery trucks across the group to increase the size of the fleet and replace some older vehicles.

Page 1

LONGWATER LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties

Looking to 2025 and beyond, the continued low levels of demand in the construction sector is expected to remain a significant challenge with price competition and margin erosion an ongoing risk. Wage costs will increase significantly in 2025 due to the National Minimum Wage and Employers National Insurance Contributions announced in the budget. These costs will be difficult to pass on due to the competitive environment in the sector putting downward pressure on overall profitability.
The Directors believe the strategy of maintaining close relationships with suppliers and major customers will allow the Company to maintain market share and margins and manage the expected market conditions.
Credit risk is mitigated by setting credit limits for customers based on information from external credit reference agencies, customer payment history and utilising debtor protection insurance. These credit limits are regularly reviewed by the Directors and the Company maintains close relationships with key customers, as well as expanding and diversifying the customer base.
The Company makes use of an invoicing financing facility to fund some of its liquidity requirements and this facility is exposed to changes in the Bank of England base rate. Interest costs incurred in 2024 remained higher than in previous years but this started to ease in the second half of the year. The Directors keep this facility under constant review to minimise the increased costs.
The Company’s approach to risk management is to minimise the effects of adverse external conditions and the Directors believe that risks to the business are well managed.

Financial key performance indicators

		2024	2023
		£'000	£'000

Turnover	43,736	43,876

Gross margin	20.0%	19.5%

Operating profit	1,261	1,693

Profit after tax	412	800

Page 2

LONGWATER LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

This report was approved by the board on 23 September 2025 and signed on its behalf.

N Carter

Director

Page 3

LONGWATER LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £274,962 (2023 - £684,503).

Total dividends paid in the year amount to £295,000 (2023 - £720,000).

Directors

The directors who served during the year were:

N Carter

W Littleboy

MA Carter

F Littleboy

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 4

LONGWATER LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, MA Partners Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 September 2025 and signed on its behalf.

N Carter

Director

Page 5

LONGWATER LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGWATER LIMITED

Opinion

We have audited the financial statements of Longwater Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 6

LONGWATER LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGWATER LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 7

LONGWATER LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGWATER LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

∙We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

∙We obtained an understanding of how the Company complies with these requirements by discussions with management and those charged with governance.

∙We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

∙We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 8

LONGWATER LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGWATER LIMITED (CONTINUED)

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Frank Shippam BSc FCA DChA (Senior statutory auditor)

for and on behalf of

MA Partners Audit LLP

Chartered Accountants

7 The Close

Norwich

Norfolk

NR1 4DJ

30 September 2025

Page 9

LONGWATER LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£

Turnover
Sales		43,735,566	43,875,975
Group turnover		43,735,566	43,875,975
Cost of sales		(34,998,082)	(35,331,589)
Gross profit		8,737,484	8,544,386
Distribution costs		(2,942,253)	(2,634,895)
Administrative expenses		(4,533,324)	(4,216,474)
Operating profit		1,261,907	1,693,017
Interest receivable and similar income	8	1,036	2,367
Interest payable and similar expenses	9	(502,792)	(566,515)
Profit before taxation		760,151	1,128,869
Tax on profit	10	(348,467)	(328,423)
Profit for the financial year		411,684	800,446

Profit for the year attributable to:
Non-controlling interests	136,722	115,943
Owners of the parent Company	274,962	684,503
	411,684	800,446

The notes on pages 20 to 41 form part of these financial statements.

Page 10

LONGWATER LIMITED

REGISTERED NUMBER: 10520451

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Intangible assets	12		355,256		493,110
Tangible assets	13		3,846,923		3,736,645
Investments	14		51,300		151,300
			4,253,479		4,381,055
Current assets
Stocks	16	3,109,343		2,998,147
Debtors: amounts falling due within one year	17	4,413,484		5,361,552
Cash at bank and in hand	18	186,389		386,830
		7,709,216		8,746,529
Creditors: amounts falling due within one year	19	(5,519,695)		(6,482,149)
Net current assets			2,189,521		2,264,380
Total assets less current liabilities			6,443,000		6,645,435
Creditors: amounts falling due after more than one year	20		(340,490)		(553,665)
Provisions for liabilities
Deferred taxation	24	(373,409)		(404,353)
			(373,409)		(404,353)
Net assets			5,729,101		5,687,417

Capital and reserves
Called up share capital	25	31,613	31,613
Share premium account	26	1,390,972	1,390,972
Profit and loss account	26	3,663,543	3,683,581
Equity attributable to owners of the parent Company		5,086,128	5,106,166
Non-controlling interests		642,973	581,251
		5,729,101	5,687,417

Page 11

LONGWATER LIMITED

REGISTERED NUMBER: 10520451

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 September 2025.

N Carter

Director

The notes on pages 20 to 41 form part of these financial statements.

Page 12

LONGWATER LIMITED

REGISTERED NUMBER: 10520451

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Investments	14		2,230,299		2,230,299
Investment Property	15		-		1,545,753
			2,230,299		3,776,052
Current assets
Debtors: amounts falling due within one year	17	925,381		11,459
Cash at bank and in hand	18	11,531		-
		936,912		11,459
Creditors: amounts falling due within one year	19	(829,951)		(1,289,452)
Net current assets/(liabilities)			106,961		(1,277,993)
Total assets less current liabilities			2,337,260		2,498,059

Creditors: amounts falling due after more than one year	20		(168,582)		(385,991)

Net assets			2,168,678		2,112,068

Capital and reserves
Called up share capital	25		31,613		31,613
Share premium account	26		1,390,972		1,390,972
Profit and loss account brought forward		689,483		570,635
Profit for the year		351,610		838,848
Other changes in the profit and loss account		(295,000)		(720,000)
Profit and loss account carried forward			746,093		689,483
			2,168,678		2,112,068

Page 13

LONGWATER LIMITED

REGISTERED NUMBER: 10520451

COMPANY BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 September 2025.

N Carter

Director

The notes on pages 20 to 41 form part of these financial statements.

Page 14

LONGWATER LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Profit and loss account	Equity attributable to owners of parent Company	Non-controlling interests	Total equity
	£	£	£	£	£	£
At 1 January 2023	31,613	1,390,972	3,719,078	5,141,663	540,308	5,681,971
Comprehensive income for the year
Profit for the year	-	-	684,503	684,503	115,943	800,446
Total comprehensive income for the year	-	-	684,503	684,503	115,943	800,446
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(720,000)	(720,000)	(75,000)	(795,000)
Total transactions with owners	-	-	(720,000)	(720,000)	(75,000)	(795,000)

At 1 January 2024	31,613	1,390,972	3,683,581	5,106,166	581,251	5,687,417
Comprehensive income for the year
Profit for the year	-	-	274,962	274,962	136,722	411,684
Total comprehensive income for the year	-	-	274,962	274,962	136,722	411,684
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(295,000)	(295,000)	(75,000)	(370,000)
Total transactions with owners	-	-	(295,000)	(295,000)	(75,000)	(370,000)
At 31 December 2024	31,613	1,390,972	3,663,543	5,086,128	642,973	5,729,101

The notes on pages 20 to 41 form part of these financial statements.

Page 15

LONGWATER LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2023	31,613	1,390,972	570,635	1,993,220
Comprehensive income for the year
Profit for the year	-	-	838,848	838,848
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(720,000)	(720,000)

At 1 January 2024	31,613	1,390,972	689,483	2,112,068
Comprehensive income for the year
Profit for the year	-	-	351,610	351,610
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(295,000)	(295,000)
At 31 December 2024	31,613	1,390,972	746,093	2,168,678

The notes on pages 20 to 41 form part of these financial statements.

Page 16

LONGWATER LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Profit for the financial year	411,684	800,446
Adjustments for:
Amortisation of intangible assets	137,854	137,854
Depreciation of tangible assets	570,216	539,705
Loss/(profit) on disposal of tangible assets	21,789	(7,943)
Interest paid	502,792	566,515
Interest received	(1,036)	(2,367)
Taxation charge	348,467	270,999
(Increase)/decrease in stocks	(111,196)	849,339
Decrease in debtors	948,068	293,932
Decrease in creditors	(1,012,777)	(1,419,762)
Corporation tax paid	(298,525)	(505,297)
Net cash generated from operating activities	1,517,336	1,523,421

Cash flows from investing activities
Purchase of tangible fixed assets	(704,849)	(529,369)
Sale of tangible fixed assets	2,566	32,566
Sale of unlisted and other investments	100,000	-
Interest received	1,036	2,367
HP interest paid	(21,617)	(17,799)
Net cash from investing activities	(622,864)	(512,235)

Page 17

LONGWATER LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

		2024	2023
		£	£


Cash flows from financing activities
Repayment of loans	(249,612)	(187,585)
Repayment of/new finance leases	5,874	(317,645)
Dividends paid	(295,000)	(720,000)
Interest paid	(481,175)	(548,716)
Dividends paid to non-controlling interests	(75,000)	(75,000)
Net cash used in financing activities	(1,094,913)	(1,848,946)
Net (decrease) in cash and cash equivalents	(200,441)	(837,760)
Cash and cash equivalents at beginning of year	386,830	1,224,590
Cash and cash equivalents at the end of year	186,389	386,830

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	186,389	386,830
	186,389	386,830

The notes on pages 20 to 41 form part of these financial statements.

Page 18

LONGWATER LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	New finance leases	At 31 December 2024
£	£	£	£

Cash at bank and in hand	386,830	(200,441)	-	186,389
Debt due after 1 year	(440,158)	267,409	-	(172,749)
Debt due within 1 year	(247,216)	(17,797)	-	(265,013)
Finance leases	(345,227)	296,487	(302,361)	(351,101)
	(645,771)	345,658	(302,361)	(602,474)

The notes on pages 20 to 41 form part of these financial statements.

Page 19

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

The Company is a private company limited by shares. It is both incorporated and domiciled in England and Wales. The principal place of business is Longwater Business Park, Norwich, NR5 0JS.
The Group's principal activity is that of builders merchants.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases..

2.3

Going concern

The financial statements have been prepared on the going concern basis as the directors consider that the Group retains sufficient working capital to continue trading for the foreseeable future.

Page 20

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

2.6

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 21

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.12

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Profit and Loss Account over an estimated useful economic life of 10 years.

Page 22

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method or on a reducing balance basis..

Depreciation is provided on the following basis:

Freehold property	-	not depreicated
Property improvements	-	2% - 50% straight line
Plant and machinery	-	10% straight line
Motor vehicles	-	25% reducing balance
Office equipment	-	25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.14

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 23

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 24

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 25

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Impairment of intangible assets and goodwill
Annually, the Group considers whether goodwill is impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.

Turnover

The whole of the turnover is attributable to one principal activity of the Group being the sale of building supplies.

All turnover arose within the United Kingdom.

Fees payable to the Group's auditor for the audit of the Group's annual financial statements

39,000

35,100

Page 26

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.	Employees
	Staff costs, including directors' remuneration, were as follows:

		Group	Group
		2024	2023
		£	£


Wages and salaries	3,172,023	3,010,271
Social security costs	319,666	309,656
Cost of defined contribution scheme	63,989	135,966
	3,555,678	3,455,893

The average monthly number of employees, including the directors, during the year was as follows:

	Group	Group	Company	Company
	2024	2023	2024	2023
	No.	No.	No.	No.

Employees	91	88	4	2

Total remuneration key management personnel during the year was £434,865 (2023 - £522,696).

7.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	35,000	12,083
Group contributions to defined contribution pension schemes	676	75,160
	35,676	87,243

During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

8.	Interest receivable
		2024	2023
		£	£

	Other interest receivable	1,036	2,367
		1,036	2,367

Page 27

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	30,119	96,007
Discounting charges	207,716	194,652
Hire purchase interest payable	21,617	17,799
Service charges	242,181	257,535
Other interest payable	1,159	522
	502,792	566,515

Corporation tax
Current tax on profits for the year	379,411	305,173

Total current tax	379,411	305,173

Deferred tax
Origination and reversal of timing differences	(30,944)	23,250
Total deferred tax	(30,944)	23,250


	Tax on profit	348,467	328,423

Page 28

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.Taxation (continued)

Profit on ordinary activities before tax

760,151

1,128,869

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)	190,038	282,217
Effects of:
Non-tax deductible amortisation of goodwill and impairment	34,464	34,464
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	82,014	20,311
Capital allowances for year in excess of depreciation	-	(226)
Other timing differences leading to an increase (decrease) in taxation	41,951	(8,343)
Total tax charge for the year	348,467	328,423

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

11.	Dividends
		2024	2023
		£	£

	Dividends paid	295,000	720,000
		295,000	720,000

Page 29

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.	Intangible assets
	Group and Company

		Goodwill
		£
	Cost
	At 1 January 2024	1,378,535
	At 31 December 2024	1,378,535
	Amortisation
	At 1 January 2024	885,425
	Charge for the year on owned assets	137,854
	At 31 December 2024	1,023,279
	Net book value
	At 31 December 2024	355,256
	At 31 December 2023	493,110

Page 30

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	Tangible fixed assets
	Group

	Freehold property	Property improve-ments	Plant and machinery	Motor vehicles	Fixtures, fittings and equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 1 January 2024	1,545,753	621,866	352,685	3,542,401	682,064	6,744,769
Additions	-	122,515	60,255	445,532	76,547	704,849
Disposals	-	(153,547)	(4,673)	(194,528)	(49,254)	(402,002)
Transfers between classes	-	(33,534)	-	-	33,534	-
At 31 December 2024	1,545,753	557,300	408,267	3,793,405	742,891	7,047,616
Depreciation
At 1 January 2024	-	208,522	172,866	2,161,775	464,961	3,008,124
Charge for the year on owned assets	-	43,971	34,388	181,044	65,956	325,359
Charge for the year on financed assets	-	-	-	244,857	-	244,857
Disposals	-	(153,397)	(3,926)	(172,442)	(47,882)	(377,647)
Transfers between classes	-	(19,445)	-	-	19,445	-
At 31 December 2024	-	79,651	203,328	2,415,234	502,480	3,200,693
Net book value
At 31 December 2024	1,545,753	477,649	204,939	1,378,171	240,411	3,846,923
At 31 December 2023	1,545,753	413,344	179,819	1,380,626	217,103	3,736,645

The net book value of assets under finance leases or hire purchase contracts, included in the above are £784,037 (2023 - £847,742).

Page 31

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.	Fixed asset investments
	Group

		Unlisted investments
		£
	Cost or valuation
	At 1 January 2024	151,300
	Disposals	(100,000)
	At 31 December 2024	51,300

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	2,230,299
	At 31 December 2024	2,230,299

Direct subsidiary undertakings
The following were direct subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

	Longwater Construction Supplies Limited	William Frost Way, Longwater Business Park, Norwich, Norfolk, NR5 0JS	Ordinary	100%
	Longwater Construction Supplies (Sleaford) Limited	William Frost Way, Longwater Business Park, Norwich, Norfolk, NR5 0JS	Ordinary	100%

Page 32

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Direct subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
Name	Aggregate of share capital and reserves	Profit
	£	£

	Longwater Construction Supplies Limited	3,927,167	272,233
	Longwater Construction Supplies (Sleaford) Limited	328,276	17,211

Indirect subsidiary undertaking
The following was an indirect subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Longwater (South East) Limited

William Frost Way, Longwater Business Park, Norwich, Norfolk, NR5 0JS

Ordinary

50.005%

	The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
	Name	Aggregate of share capital and reserves	Profit £

Longwater (South East) Limited

1,251,790

278,484

Page 33

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	Investment property

	Company

		Freehold investment property
		£

	At 1 January 2024	1,545,753
	Disposals	(1,545,753)
	At 31 December 2024	-

16.	Stocks
		Group	Group
		2024	2023
		£	£

Raw materials and consumables	3,109,343	2,998,147
	3,109,343	2,998,147

Stock recognised in cost of sales during the year as an expense was £34,741,177 (2023 - £35,123,111).
An impairment reversal of £8,760 (2023 - impairment loss of £2,202) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

Page 34

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.

Debtors

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£


Trade debtors excluding factored debts	592,307	996,430	-	-
Factored debts	2,079,681	2,545,983	-	-
Amounts owed by group undertakings	-	-	925,381	-
Other debtors	978,083	832,493	-	-
Prepayments and accrued income	763,413	986,646	-	11,459
	4,413,484	5,361,552	925,381	11,459


		2024	2023
		£	£

Gross factored debts outstanding for the invoice financing facility	6,800,718	5,371,166
Non-recourse finance of factored debts	(4,721,037)	(2,825,183)
Factored debts	2,079,681	2,545,983

Security is provided by the Group for the invoice financing facility.

18.	Cash and cash equivalents
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Cash at bank and in hand	186,389	386,830	11,531	-
	186,389	386,830	11,531	-

Page 35

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

19.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank loans	265,013	247,216	215,013	197,216
Trade creditors	3,443,846	4,348,321	-	-
Amounts owed to group undertakings	-	-	553,214	1,056,521
Corporation tax	266,454	185,568	38,152	24,015
Other taxation and social security	145,026	211,150	11,872	-
Obligations under finance lease and hire purchase contracts	183,360	231,720	-	-
Other creditors	271,865	394,790	-	-
Accruals and deferred income	944,131	863,384	11,700	11,700
	5,519,695	6,482,149	829,951	1,289,452

Secured loans
The finance lease and hire purchase liabilities are secured on the assets concerned.
A bank loan of £383,595, recognised in Longwater Limited, is secured on the Freehold property held by Longwater (South East) Limited.

20.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank loans	172,749	440,158	168,582	385,991
Net obligations under finance leases and hire purchase contracts	167,741	113,507	-	-
	340,490	553,665	168,582	385,991

Page 36

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Amounts falling due within one year
Bank loans	265,013	247,216	215,013	197,216
Amounts falling due 1-2 years
Bank loans	172,749	435,991	168,582	385,991
Amounts falling due 2-5 years
Bank loans	-	4,167	-	-

	437,762	687,374	383,595	583,207

22.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2024	2023
		£	£

Within one year	183,360	231,720
Between 1-5 years	167,741	113,507
	351,101	345,227

Page 37

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

23.	Financial instruments
		Group	Group
		2024	2023
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	186,389	186,389

Financial assets measured at fair value through profit or loss comprise fixed asset investments and cash and cash equivalents.

24.	Deferred taxation
	Group

		2024
		£

	At beginning of year	404,353
	Charged to profit or loss	(30,944)
	At end of year	373,409

		Group	Group
		2024	2023
		£	£

	Accelerated capital allowances	373,409	404,353
		373,409	404,353

Page 38

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

25.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

Ordinary C shares of £1.00 each	10,000	10,000
Ordinary D shares of £1.00 each	8,250	9,750
Ordinary G shares of £1.00 each	5,161	5,161
Ordinary I shares of £1.00 each	3,226	6,452
Ordinary J shares of £1.00 each	1,750	250
Ordinary K shares of £1.00 each	3,226	-

	31,613	31,613

On 28 March 2024 there was a share capital reclassification.

26.

Reserves

Share premium account

The share premium account represents the difference between the par value of issued shares and the issue price.

Profit and loss account

The profit and loss account reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

27.	Capital commitments
	At 31 December 2024 the Group and Company had capital commitments as follows:
		Group	Group
		2024	2023
		£	£

	Contracted for but not provided in these financial statements	1,442,965	-
		1,442,965	-

28.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £63,989 (2023 - £135,966). Contributions totalling £Nil (2023 - £5,269) were payable to the fund at the balance sheet date and are included in creditors.

Page 39

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

29.	Commitments under operating leases
	At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Not later than 1 year	272,659	81,417	227,659	-
Later than 1 year and not later than 5 years	1,045,636	232,500	910,636	-
Later than 5 years	2,219,675	-	2,219,675	-
	3,537,970	313,917	3,357,970	-

30.	Transactions with directors

At 1 January 2024, the Group owed £164,249 to directors. During the year, directors received advances of £105,077 and dividends of £95,000. The balance payable by the Group as at 31 December 2024 was £154,173 included in other creditors in Note 19 of the financial statements.

31.

Related party transactions

During the year, Longwater Construction Supplies Limited purchased goods and services from Longwater (South East) Limited amounting to £49,566 (2023 - £12,666), sold goods and services amounting to £22,891 (2023 - £8,873) and charged a management fee of £75,000 (2023 - £75,000). Longwater (South East) Limited is a subsidiary of the Company. At the year end, the Company was owed £185,460 (2023 - £262,226) from Longwater (South East) Limited.
During the year, Longwater Limited charged rent to Longwater (South East) Limited amounting to £178,075 (2023 - £227,459) and recharged interest of £7,703. Longwater Limited transferred property to Longwater (South East) Limited at a value of £1,450,000. At the year end, the Company was owed £925,381 from Longwater (South East) Limited (2023 - owed £545,206).
During the year the Longwater Construction Supplies (Sleaford) Limited made sales to Longwater (South East) Limited of £1,068. At the year end,the Company was owed £Nil (2023 - £423).
During the year, the Group purchased goods and services from The Longwater (Gravel) Company Limited amounting to £385,412 (2023 - £145,137), sold goods and services amounting to £70,693 (2023 - £84,823) andpaid rent of £134,800 (2023 - £134,800). The Longwater (Gravel) Company Limited is a company with shareholders and a director in common. At the year end, the Group owed £20,511 (2023 - £73,203) to The Longwater (Gravel) Company Limited.
During the year, the Group purchased goods and services from Geomesh Ltd amounting to £159,446 (2023 - £670,768) and sold goods and services amounting to £303,199 (2023 - £567,604). Geomesh Ltd is a company with a shareholder and director in common. At the year end, the Group was owed £251,817 (2023 - £212,919) from Geomesh Ltd.
At the year end, the Company was owed £Nil (2023 - £60,610) from TT Investments (Norfolk) Limited, a company with a shareholder and director in common.

Page 40

LONGWATER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

32.	Post balance sheet events

On 3 January 2025 the Company established equity share based payment arrangements with certain employees under an Enterprise Management Incentive Scheme.

33.	Controlling party

The ultimate controlling parties are N Carter and Mrs M A Carter.

Page 41